Project 1819 October 2020 Promoting Transit-Oriented Developments by Addressing Barriers Related to Land Use, Zoning, and Value Capture Shishir Mathur, PhD Aaron Gatdula, MCP MINETA TRANSPORTATION INSTITUTE transweb.sjsu.edu MINETA TRANSPORTATION INSTITUTE MTI FOUNDER LEAD UNIVERSITY OF Mineta Consortium for Transportation Mobility Hon. Norman Y. Mineta MTI BOARD OF TRUSTEES Founded in 1991, the Mineta Transportation Institute (MTI), an organized research and training unit in partnership with the Lucas College and Graduate School of Business at San José State University (SJSU), increases mobility for all by improving the safety, Founder, Honorable Grace Crunican** Diane Woodend Jones Takayoshi Oshima efficiency, accessibility, and convenience of our nation’s transportation system. Through research, education, workforce development, Norman Mineta* Owner Principal & Chair of Board Chairman & CEO Secretary (ret.), Crunican LLC Lea + Elliott, Inc. 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Nuria Fernandez** Therese McMillan Beverley Swaim-Staley MTI’s transportation policy work is centered on three primary responsibilities: Vice Chair, General Manager & CEO Executive Director President Will Kempton Santa Clara Valley Metropolitan Transportation Union Station Redevelopment Executive Director Transportation Authority (VTA) Commission (MTC) Corporation Research Sacramento Transportation Authority John Flaherty Bradley Mims Jim Tymon* MTI works to provide policy-oriented research for all levels active assistance of the California Department ofTransportation Executive Director, Senior Fellow President & CEO Executive Director of government and the p rivate sector to foster the develop- (Caltrans), MTI delivers its classes over a state-of-the-art Karen Philbrick, PhD* Silicon Valley American Conference of Minority American Association of Mineta Transportation Institute Leadership Form Transportation Officials (COMTO) State Highway and Transportation ment of optimum surface transportation systems. 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MTI’s extensive collection of transportation- related Karen Philbrick, PhD graduate certificates in Transportation Management, Transportation publications is integrated into San José State University’s Executive Director Security, and High-Speed Rail Management that serve to prepare world-class Martin Luther King, Jr. Library. the nation’s transportation managers for the 21st century. With the Hilary Nixon, PhD Deputy Executive Director Asha Weinstein Agrawal, PhD Education Director National Transportation Finance Center Director Brian Michael Jenkins National Transportation Security Disclaimer Center Director The contents of this report reflect the views of the authors, who are responsible for the facts and accuracy of the information presented herein. This document is disseminated in the interest of information exchange. The report is funded, partially or entirely, by a grant from the U.S. Department of Transportation’s University Transportation Centers Program. This report does not necessarily reflect the official views or policies of the U.S. government, State of California, or the Mineta Transportation Institute, who assume no liability for the contents or use thereof. This report does not constitute a standard specification, design standard, or regulation. REPORT 20-35 PROMOTING TRANSIT-ORIENTED DEVELOPMENTS BY ADDRESSING BARRIERS RELATED TO LAND USE, ZONING, AND VALUE CAPTURE Shishir Mathur, PhD Aaron Gatdula, MCP October 2020 A publication of Mineta Transportation Institute Created by Congress in 1991 College of Business San José State University San José, CA 95192-0219 TECHNICAL REPORT DOCUMENTATION PAGE 1. Report No. 2. Government Accession No. 3. Recipient’s Catalog No. 20-35 4. Title and Subtitle 5. Report Date Promoting Transit-Oriented Developments by Addressing Barriers Related to October 2020 Land Use, Zoning, and Value Capture 6. Performing Organization Code 7. Authors 8. Performing Organization Report Shishir Mathur, PhD, https://orcid.org/0000-0003-4601-7636 CA-MTI-1819 Aaron Gatdula, MCP https://orcid.org/0000-0002-9739-7299 9. Performing Organization Name and Address 10. Work Unit No. Mineta Transportation Institute College of Business 11. Contract or Grant No. San José State University 69A3551747127 San José, CA 95192-0219 12. Sponsoring Agency Name and Address 13. Type of Report and Period Covered U.S. Department of Transportation Final Report Office of the Assistant Secretary for Research and Technology 14. Sponsoring Agency Code University Transportation Centers Program 1200 New Jersey Avenue, SE Washington, DC 20590 15. Supplemental Notes DOI: 10.31979/mti.2020.1819 16. Abstract This study advances land use, transportation planning, and public finance research by identifying: a) the various land use, zoning, and value capture-related barriers to the construction of transit-oriented developments (TODs); and b) the major strategies that are commonly used or could be used to address these barriers. The value capture (VC) tools include joint development projects, tax increment financing, special assessments, lease/sale of land or air rights, and impact fees. The research finds that while a large proportion of jurisdictions across the US have TODs, land use, zoning, and VC-related barriers often impede their construction. Most transit agencies are not allowed to purchase land for constructing TODs, nor do they have land use and zoning powers over the station-area land. In the absence of legally enforceable inter-agency agreements between city governments and transit agencies, a large proportion of these public agencies rely on looser, collaborative agreements. Finally, while the use of eminent domain to assemble land parcels is critical for constructing TODs in already-developed areas, local governments rarely use this power to enable TODs. 17. Key Words 18. Distribution Statement Transit-oriented development, land No restrictions. This document is available to the public through use, zoning, value capture, public The National Technical Information Service, Springfield, VA 22161 transit 19. Security Classif. (of this report) 20. Security Classif. (of this page) 21. No. of Pages 22. Price Unclassified Unclassified 169 Form DOT F 1700.7 (8-72) Copyright © 2020 by Mineta Transportation Institute All rights reserved DOI: 10.31979/mti.2020.1819 Mineta Transportation